Tax extenders — the term given to provisions in the tax code that, if not renewed every year or two, will expire — were the subject of a recent hearing of the U.S. Senate Finance Committee.

More than 130 extenders, from the R&D credit to deductions for state and local taxes, currently clutter the tax code, Senator Max Baucus (D-Mont.), ranking member of the Committee, said at the hearing. The uncertainty they create causes hassles for both homeowners and businesses. “For businesses to succeed, Congress must provide a stable and certain tax code,” Baucus said. more

The folks at the Financial Analysis Lab at Georgia Tech are out with their latest analysis of corporate cash flow. The finding? For the sixth reporting period in a row, corporate cash flow dropped. While that sounds ominous, the drop actually signals a recovering U.S. economy, they say.

The analysis examined about 2,900 non-financial companies with current market caps of at least $50 million. For the twelve-month period ending September 2011, the free cash margin stood at 4.41 percent, down from 4.63 percent for the year ending June 2011. Its most recent high was in March 2010, when free cash margins hit 7.18 percent. (Free cash margin, according to the report, indicates the percent of revenue left for shareholders in the form of free and discretionary cash flow, and tells how many cents shareholders can take home without reducing the company’s ability to generate more.) more

Currently, the IRS often ends up auditing tax returns months — in some cases, years — after they’ve been filed. While no reasonable person would claim that audits are enjoyable in the first place, having such a gap between the date of the return and the start of an audit can make the process even more difficult.

Doug Shulman, IRS Commissioner, has talked about the difficulties the current system presents, and his goal of changing the system so that examinations occur nearer to the time when the returns are filed. Speaking in April 2011 before the National Press Club, Commissioner Shulman said, “This after-the-fact compliance approach can create problems and frustrations for both taxpayers and the IRS. It can be a real dilemma for taxpayers, who may no longer have the money that was refunded to them, but it turns out, they were not entitled to. There’s also possible sticker shock because interest and perhaps penalties may have been accruing on any tax due for up to three years. Taxpayers ask, ‘Why didn’t you notify me earlier?’ This hurts the IRS’ image and contributes to a “gotcha” perception.” more

As just about anyone with even a passing interest in economic news is aware, most of the growth across the world’s economies is occurring in emerging markets. While the World Bank expects the U.S. to grow at between two and three percent over the next few years, and Europe at less than two percent, it is forecasting growth of just under nine percent in China, five-plus percent in Turkey and about four percent in Mexico.

Companies that want to take advantage of the growth opportunities in these markets often turn to mergers or acquisitions, given that this usually is faster than trying to build operations from the ground up when working across national borders. In fact, a recent survey of M&A professionals by mergermarket and IntraLinks found that most expect cross-border M&A deals involving companies in emerging markets to outpace activity in the developed markets over the next 12 months. Nearly three-quarters of respondents expect cross-border M&A activity to increase in emerging markets, while just 50 percent predict an increase in developed countries. more

Asset-based loans (ABLs), which typically are secured by an asset on the company’s balance sheet, such as inventory or accounts receivable, enjoyed a record year in 2011. The value of ABLs made during the year topped $100 billion, according to data from Thomson Reuters LPC. About 375 deals were completed, or more than during any of the previous seven years. Asset-based loans accounted for 18% of the overall leveraged loan market, up from about 10% five years ago.

The bulk — in fact, more than 80% — of the loans were for refinancing. Conversely, the volume of new money deals came close to historical lows, due to drops in buyout financing for mergers and acquisitions, Thomson Reuters said. more